Posts about hyperlocal

NBC is going to start a 24-hour local TV channel in New York, competing with lots of other players: Time Warner’s NY1 and Cablevision’s News12s, not to mention newspaper video — see Rachel Sterne’s argument that newspapers are starting to steal the beat on live video from TV — and lots of independent comers — see Josh Wolf’s experiment in a live video network covering the Olympics torch protests on the West Coast using mobile phones, Qik, Twitter, and more.

It’s crowded turf, local. But this is exactly where local broadcast must seek its future — its survival — while its value of a distributor diminishes to zero.

Steve Safran lectures broadcasters, telling them that their salvation is not technology but local. I think the mistake is for broadcasters to think media at all: It’s about real reporting (of which local TV news does precious little, let’s remember — nobody needs fires 24/7), real service, a real connection with the community across any and all media. It’s not about channels or even web sites or mobile. It’s about service and a meaningful connection with the community.

And it’s about finding ways to serve many more, much smaller advertisers in many ways. There, local broadcasters will battle with local newspapers and with local cable MSOs and there’s no way to predict the winner. The war is on.

The Wall Street Journal says of the NBC project:

NBC is investing several million dollars in the venture, building a “content center” that will house local TV staff and operations. NBC doesn’t plan to hire a new staff for the channel, but instead said it will retrain its existing staff to produce news for the regular affiliate broadcasts, the 24-hour network and a new version of WNBC’s Web site, to be called NBC New York.

If successful, the New York channel will serve as a model for other markets, including Los Angeles, Philadelphia and Chicago, where NBC owns the NBC-branded local station. In most smaller markets, the NBC-branded affiliate is owned by another affiliate group.

“We think this will be better for advertisers,” said WNBC General Manager Tom O’Brien. “We’ll be able to aggregate different audiences and create a bigger audience, and that gives us a lot more opportunities to go to the advertising marketplace.”

It warms my cockles to see a local blog ad network start, especially from a company as big as CBS’ station group.

They just announced a new widget ad network in 13 of their local markets (the owned & operated stations with newsrooms). In a week and a half, they’ve put together 80 blogs in the network, many more to come. They are all local blogs around various content interests: news, politics, sports, real estate, entertainment. This is pretty much just an ad network rather than a curated ad-and-content network like Glam. CBS intends to send the blogs some traffic, but unlike Glam, it’s not aggregating and curating their content. They’re looking for decent blogs that are local and are updated regularly, but they’re not yet turning this into a contest where the best quality wins (that day will come, I hope). When I spoke with them, they did add that they’re delighted with the quality of the local blogs they’ve seen.

You can see an example of the ad unit here and here: a constant feed of content (video stills in most cases, text in others) over an ad unit. So far, they’ve sold AT&T, Liberty Mutual, and the Honda dealer group in Dallas. They will sell in both local and national ads; it’s too soon to know what that mix will be, but they anticipate about an even split.

This is a model I like and one I’ve been pushing with companies I know: You could look at this as an ad with content attached or as content with an ad attached. So the blogger gets an ad, revenue, a some small dollop of content, and an association with a major media brand (which some still value). The station gets to push its advertiser as well as its content and brand and gets an association with those cool bloggers and its gets new inventory and audience. The advertiser has a better idea of the environment because there’s content next to the ad and because the station picks the blogs. What’s not to love?

The CBS unit also carries the local station’s branding plus a link to a pitch to join the network. Here are examples of the units.

I spoke with Jonathan Leess, president and general manager of the CBS station digital group, and Aaron Radin, senior vp for their ad sales and biz dev. They understand that this is not just about driving traffic to CBS domains but about reaching audience they may not now serve in other places. That’s the attitude.

I had to pull numbers out of them like baby teeth. They’re telling the bloggers to expect an effective CPM of about 50 cents but they quickly acknowledge that they’re subsidizing and backfilling the network, which is brand new. That is, they’re not yet selling the high-value ads and they’re not selling out, so they are putting in lower-value advertising in some cases and throwing in a subsidy on top. So that’s the net-net bloggers can expect today. But that’s not the value they’re selling to advertisers. That, they said, is more like a $10 CPM (though all life is negotiable). Compare that with $8-20 CPMs on CBS domain banner ads and $16-25 on video inventory. If they can sell a CPM approaching a double digit for local blogs and sell through enough inventory, that could be healthy. In the end, I ask, what will the value of a network impression be relative to a CBS domain impression? Again, it’s too early to say, but Radin guesses one third to one half.

They hope to add 20 million incremental (that is, new) ad impressions per month per market, though they’re quick to add that their goal isn’t just ad impressions but also new audience. Amen. And note that they’re pushing not just web pages but also those high-value video views. Leess and Radin said they serve 20-25 million streams a month, about half of that from the stations’ sites and half from syndication to Yahoo.

By the way, Buzzmachine is not local so it won’t qualify. Drat. When will somebody start that media wonks’ network?

Here, at last, is a full description of the Networked Journalism Summit we’ve been organizing at the CUNY Graduate School of Journalism. I’m really excited about the event: a great list of people participating, many best practices and lessons to share, lots of possibility for new efforts to come out of the meeting:

This is a day about action: next steps, new projects, new partnerships, new experiments. The first two-thirds of the day will be devoted to sharing lessons, ideas, and plans with a representative sample of different kinds of efforts, hyperlocal to national to international, with participants from big and small media, from editorial and business, from the U.S., Canada, the U.K, Germany, and France. The last third of the day will be devoted to what’s next, with participants meeting to come up with new collaborations.

What makes this meeting different? We hope this does:
* It’s about action and next steps, not talk.
* The panel discussions will be discussions, not presentations. Every session will start with very brief introductions and then go immediately to discussion from the entire room.
* This is made possible by write-ups of the work being done by everyone in the room that will be distributed before the meeting. David Cohn is reporting some of these (and they are beginning to appear on this blog); the participants will submit more. This give everyone a headstart and lets them get right to their questions. You can read these starting now at the summit blog.
* We will followup on the actions pledged by the participants with reports on progress that will be shared on this blog.
* No MSM-bashing or blog-bashing allowed. We’ll gong it off. This is about working together. The snarking is over.
We hope people leave with a lot of new information and inspiration, with new partners, and with new steps to take to spread journalism in their communities.

The premise of all this is that even as journalistic organizations may shrink, along with their revenue bases, journalism itself can and must expand and it will do that through collaborative work. The internet makes that collaboration possible and we’ve barely begun to explore the opportunities it affords. A year or two ago, the point of such a meeting might have been evangelizing this idea. But in that time, a number of great projects in collaborative, networked journalism have taken off. So now is the time to share the lessons — success and failures — from these efforts and to determine what’s needed to move on to the next goals. By bringing together about 150 practitioners from all sides, we hope that the meeting itself can spark new partnerships and projects.

Among the sessions planned:
* Sharing experience from hyperlocal projects.
* Early efforts to make money at this: ad networks, print publications (ironically), independent businesses.
* International efforts from the UK and Germany.
* Reports from visible projects, including Gannett’s reorganization of its newsrooms around citizen participation, Jay Rosen’s experience with NewAssignment.net, and Now Public.
* Video and broadcast projects.
* Projects built around data as news.
* New tools.
* Political efforts.

In the afternoon, the participants will split into groups — local east or west, national, business, multimedia, revenue, tools, and other groups that form at the meeting — to pledge next steps. After reporting back to the meeting as a whole on these promised efforts, all will be rewarded with wine.

We have a great cross-section of different kinds of efforts, different models, and different locales. There is room for a few more. If you are interested in attending, please email David Cohn, who has been doing a great job organizing the conference and the information around it: [email protected].

The meeting will begin at the auditorium in the new New York Times headquarters on 40th Street and 8th Avenue in New York. It will then move next door to the new CUNY Graduate School of Journalism at 219 W. 40th Street, New York.

This meeting is made possible entirely through a grant from the John D. and Catherine T. MacArthur Foundation. The summit is organized by Jeff Jarvis, who heads the interactive journalism program at the CUNY Graduate School of Journalism and blogs on journalism and media at Buzzmachine.com. The school has just begun its second year as the only publicly supported school of journalism in the Northeast.

The next meeting at CUNY, early next year, will focus on new business models for news.

Just saw that the Chicago Tribune is following Bakersfield’s Northwest Voice and taking citizen content contributed online and then freeze-drying it into a print publication it is distributing in a handful of suburbs.

I’m jealous. I always wanted to do something like this when I was involved with local papers.

I think there are also more ways to push the model, some I hope we can discuss at the networked jouralism conference we’re having at CUNY on Oct. 10. For example:

You don’t need to have everything come to you at the site, Backfence-like. You can go to the local bloggers and get news from their blogs. You can encourage them to do more and get more bloggers to blog. You can pay them to encourage them to contribute what you need (it’ll be cheaper than paying staff and they won’t complain as much). The bloggers can perhaps take charge of organizing the news in the community and you help them. You make the product the center of a hyperlocal ad netework, which any of the participants can sell into.

The Shorenstein Center at Harvard just released a report arguing that local newspapers are the most threatened by the internet. I’ll discuss how to deal with that “threat” in a moment.

But first, I have to say that I think the report’s methodology — and, a few cases, its analysis — are seriously flawed. They relied on just one source of data for news sites’ audience, Compete.com, and in my random check of its data versus the stats I know for various services, Compete wildly undercounts audience — by half or as much as two-thirds. Like all sampling methodology in a broadly distributed or fragmented universe, it cannot possibly accurately measure smaller, nicheier sites — that is, it will be biased against local sites because their audiences are smaller. In other words, its undercount for local news sites I know is worse than its undercount of NYTimes.com. And that comparison is critical to the study’s conclusions: that big, national brands are better off than local brands. They say they picked Compete because it is free and U.S.-based and that its rankings are relatively in line with other services. But rankings are not the basis of this report; absolute numbers are. So it is a pity that they did not also approach the sites they analyze to get server data and compare that with the samplers’ data. It also would have been helpful to go to services that have a broader view of traffic, such as Tacoda, to triangulate their data and also deal with issues of audience overlap.

Having said that, let’s still take the Shorenstein report’s conclusions at face value and talk about how local newspapers can deal with this alleged threat.

But first, I’ll challenge the notion that it’s a threat. As I see it, local newspapers are, for the first time since the advent of network news in the ’50s, in competitive markets. And I’ll argue that competition is good and healthy. The continuing growth of the national brands the report points to comes in a highly competitive national news market. So while the report notes that some of its small sample of metro papers are suffering flat or even declining traffic, it also notes growth in local TV stations’ sites — now that they are getting competitive and now that video is a workable medium on the web. And so, adding newspapers’ traffic with TV sites’ — and the many other local sites that are starting to blossom and that the report acknowledges are nearly impossible to measure using sampled data — isn’t there a net growth in local news traffic? anticipated. The report wonders: “[I]t is not clear just how much Internet traffic a particular community can bear. If local newspapers, television stations, and radio stations all compete strongly for residents’ Internet
time, are there enough users to go around?” That’s the wonder of competition. It’s not as if we pick one news site and stick with it; that’s even less likely in a medium built on links and search. No, I say that more news means more interest in news.

But let’s still accept the Shorenstein conclusion that national brands will have an easier time than local brands in attracting traffic. Says the report: “The Internet is also a larger threat to local news organizations than to those that are nationally known. Because the Web reduces the influence of geography on people’s choice of a news source, it inherently favors ‘brand names’–those relatively few news organizations that readily come to mind to Americans everywhere when they go to the Internet for news.”

I think they have a point. In a portal economy, the big guys get bigger. But I’ll keep arguing that the most successful internet company — Google — isn’t a portal but a distributed network and there are lessons in that for local news: WWGD.

So given present circumstances, are local newspaper sites screwed? Let’s take the Shorenstein report’s worst case and say they are. But the response to that should not be to lie down and die but to figure out what to do about it. This isn’t an attack on local newspapers. It is a new market reality. The only responsible response is change. A few humble suggestions, linking to posts on the subject I’ve written here:

* Get distributed. Get aggregated. The Shorenstein report marvels at the growth of Digg — growth so great (2-to-15 million users in a year) it wouldn’t fit on their chart. But the report’s authors come at this with an old-media prejudice: that aggregators are “free riders” that compete without bearing “an equitable share of the production costs.” Wrong analysis. These aggregators are your distributors — and they’re even better than newsstands because they’re more efficient and targeted and they don’t take a cut of your circulation revenue. So the natural question the report should be asking — the one that more and more wise newspapers are asking is: How do we get on Digg more often? How do get more links and audience Digg?

A while ago, I had lunch with a big-paper executive and brought son Jake along. The executive was pooh-poohing Digg, saying nobody really uses it. At that very moment — swear to God Google — Jake was sensibly bored and was engrossed in his iPhone. What was he doing? Digging. And how does Jake find the news he reads — and it’s a lot of news? Through Digg and friends. Aggregators and links, the magic combination. Jake told the executive that he doesn’t even go to blogs to read them anymore. He gets his news not from portals and brands but from links.

Keep in mind that I’m a partner at an aggregator, Daylife. Part of my reason for getting involved is that I believe aggregation and links are the keys to success for news organizations online. Without aggregation and links, all you have is marketing costs to attract users to a portal that doesn’t fit in their online lives anymore.

* Think beyond the link: Widget it. Perhaps a link isn’t enough. In relying on the link, we are still making people come to us. We should be going to them. Listen to CBS’ Quincy Smith: “We can’t expect consumers to come to us. It’s arrogant for any media company to assume that.” What does that mean? I’m not sure. But think of it this way: The more that we can find ways to put out content out there — and benefit from branding and monetization via advertising or other means — and the more we can get people to distribute us (in which case, we are the free riders), the larger we will grow. So if we can come up with those means, we should encourage the aggregators and portals and bloggers to take our stuff and spread it around. If.

* Network. Network. Network. We need to network in every sense of the word:
1. Just as we need to be aggregated, we need to aggregate. We need to pull in a broader network of content from our communities. We can’t do it all ourselves, not anymore.
2. We need to set up networks that benefit these new producers so we can gather more and produce less. I mean ad networks.
3. Get involved in our communities. If our value is local then we have to get local and mean it. We need to crack the hyperlocal nut and that’s not just about content. That’s about enabling a community to do what it wants to do. That’s about human relations in our communities. Local is about people.
So in the long run, to measure our success and influence and loyalty, you don’t just measure one site, you measure our presence in the community online.

* Promote while we still can. Rather than fretting about cannibalization, we should be using our diminishing promotional power to push people to what comes next. Invent it. Promote it.

* Report, damnit, report. The most important thing we can do is, of course, bring journalism to the community: report. We need to become known as the indispensable sources of local help and information and I’d argue — contrary to the Shorenstein report — that this comes not from trying to compete with the big guys in national, commodity news but by putting all our resources behind what we do best and what no one else — including, ferchrissakes, local TV — can afford to do: report. We have to make our value absolutely clear and we need to increase that value even as our resources are diminished. How? Do what you do best and link to the rest.

Blodget’s first analysis — in which he purports to run the numbers and show how the New York Times is screwed — is flawed for many of the reasons these others point out (the Times is the Grand Exception to all rules, for example) and others’ I’ll point out.

First, he far underestimates the savings that would result from the hypothetical death of print. I don’t have current numbers for the Times, but use the San Francisco Chronicle as an example: It has 3,000 employees, 400 of whom are editorial. Blodget said that if paper died at the Times, only 25 percent of labor costs would disappear. Hardly. Ink, paper, printing, handling, distribution, circulation marketing, accountants who audit sleazy distributors, plants for all this, trucks… lots of costs would disappear. I’ve heard it said that this would amount to $1 billion a year at the Times.

Second, there are other savings that papers other than the Times can execute — getting rid of commodity news, for example.

Third, there’s no reason to say that some highly profitable print products could not remain — specialized publications, free papers, hyperlocal publications, and so on.

The fundamental problem with both Blodgett’s and the Shorenstein report’s analyses — not to mention the worldview of too many a newspaper executive still — is that they essentially define the product as it is, steady state, without the innovation, change and growth the internet enables and demands.

Who says that a newspaper is just news? It can also be community. Who says all the content is produced by expensive staff? Much of it can be produced in a broader network the paper doesn’t have to pay for. Who says that the only inventory to be sold is on newspaper.com page? Build a bigger network and you have more to sell. And who says Google has to own the world?

Blodget’s latest analysis argues that Google is “sucking the life out of media.” That’s because we in media are letting Google do that — indeed, helping Google do that. Newspapers make it painfully difficult for advertisers large and small to buy them — because they spent so many years operating as monopolies (I honestly know people in the classifieds departments of newspapers who spent their days telling advertisers what they could not do with their money). And they have no idea how to serve the limitless mass of small advertisers who couldn’t afford them before but who can now afford Google. Add to this the general behind-the-times stupidness of advertisers and, yes, you do have a formula for Google world domination. But it doesn’t have to be that way. Newspapers and media companies can create and sell new value to advertisers and can band into networks to make it as easy for those advertisers to give them money as it is for them to go fill in a form at Google.

If they do nothing, I agree that newspapers are screwed. But there’s still time to do something. Tick. Tick. Tick.